Intrenet Faces Class-Action Suit Over Bankruptcy

Legal pressures are mounting against Intrenet Inc., the transportation holding company that ceased operations Jan. 2 and formally filed for Chapter 11 bankruptcy protection Jan. 19.

Three East Coast law firms are searching for shareholders of the Ohio-based company to join a class-action lawsuit that was filed Jan. 11 against Intrenet in U.S. District Court in Cincinnati (1-22, p. 6). PR Diamonds Inc., the plaintiff and a shareholder, said it was mislead by Intrenet’s financial reports, which the company itself admits may have been inaccurate.

A statement from Intrenet said the company has retained two prominent law firms and a national accounting firm to defend it. The corporation also stated that its president, John P. Chandler, was dismissed as an officer and resigned from the board of directors, which is still chaired by Thomas J. Noonan Jr.

The three law firms, from New York, suburban Philadelphia and Baltimore, are looking for people who purchased the company’s stock between Feb. 19 and Oct. 13, 2000. A lawyer for the plaintiff told the Associated Press he estimates there are “hundreds” of such people. In the company’s most recent earnings report — the second quarter of 2000 — it had 15 million shares outstanding.

For the full story, see the Jan. 29 print edition of Transport Topics. Subscribe today.